A deal involving US prosecutors and SAC Capital is in the works in order to resolve a criminal insider trading case the firm is currently facing. According to a source familiar with the matter, the deal can be finalized within the next few days.
The deal between SAC Capital and federal authorities would include admission of liability by the hedge fund as well as payment of more than USD1 billion or GBP618,7 million as fines and penalties, according to the source who sought anonymity as the information was not yet made public. The said payments would be both as penalty and forfeiture of trading profits from improper trading perpetrated by SAC Capital Advisors.
The negotiations on the settlement had been ongoing for several weeks now. Once approved, it would be a definite punch in the gut for Steven A. Cohen's reputation as one of the best stock traders of his generation. People familiar with the billionaire trader's situation have said he had been telling people he was looking forward to putting the investigation, which has run for nearly seven years, behind him.
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